Weekly Forex Update: EUR/AUD |
EUR/AUD is moving down inside the highly Uniform Failing Wedge chart pattern identified by Autochartist on the daily charts. The Quality of this chart pattern is rated at the 3 bar level reflecting the following values of the individual contributing Quality indicators: low Initial Trend and Clarity (both measured at the 2 bar level) as well as the strong Uniformity (rated at the 7 bar level). The Higher uniformity of this Failing Wedge reflects even distribution of the connecting points of the upper and the lower trendlines of this chart pattern.
This chart pattern is continuing the predominant downtrend visible on the daily and the weekly charts. The top of this chart pattern (Point A on the chart below) formed at the combined resistance made out of the round price level 1.4300 and the 50% Fibonacci Retracement of the sharp weekly down impulse that preceded this Failing Wedge (as is shown on the second chart below). Two of the connecting points for the lower support trendline of this chart pattern formed close to the strong support at the round price level 1.3300. It should also be noted that points C and A of this chart pattern mark the ending points of the longer-term preceding weekly upward ABC correction to the sharp downward impulse mentioned above. More specifically – point C marks the end of wave B and point A marks the end of wave C of this weekly upward ABC correction.
The price has recently reversed from the strong resistance at 1.3800 (point B above) coinciding with the 50% Fibonacci Retracement of the first downward impulse of this chart pattern (from A to D). The pair is expected to fall further in the coming sessions.
The following weekly EUR/AUD chart demonstrates the longer-term technical level affecting the pair now:
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